RCOD deadline for PPA hydropower projects to be reset, what are the conditions?
लगानी न्यूज
Kathmandu. Preparations are underway to extend the deadline for commercial generation of electricity by classifying the existing situation of hydropower projects that have reached various stages of construction but have not yet come into operation by signing Power Purchase and Sale Agreement (PPA).
A meeting of the Board of Directors of Nepal Electricity Authority (NEA) held on July 14 decided to categorize the project into four groups based on the physical progress of the project, the scheduled date of commencement of commercial generation (RCOD) and the implementation status of various obligations mentioned in the PPA.TAG_OPEN_div_70
Group ‘A’ in
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Projects that have not completed the date of commencement of commercial production (RCOD) and have completed the obligations stipulated in the PPA including production license, financial management, land management on time or are yet to be completed within the stipulated time as per the agreement.
Group ‘B’ma
} The projects which have not been able to come into operation due to the construction of transmission line or substation for grid connection as per the agreement and have fulfilled the conditions set by the Board of Directors for the addition of RCOD.
Similarly, the RCOD projects have been approved by the Authority by submitting an application with documents confirming that the RCOD has been terminated but the situation outside the control mentioned in the PPA has affected the construction of the project during the RCOD period.TAG_OPEN_div_60
{{TAG_OPEN_div_58} Projects that have completed RCOD but have achieved more than 25 percent physical progress during the RCOD period will be included.
Group ‘G’
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} Even if the RCOD is not expired, the projects that have not fulfilled the major obligations mentioned in the PPA, such as production license, financial management or land management, or have made less than 25 percent physical progress of the project till the expiry of the RCOD, will be kept in place.
Group ‘D’
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Even after the expiry of the RCOD period, the obligations mentioned in the PPA, such as the acquisition of production license, financial management, failure to complete land management or revocation of survey and production license, will be included.TAG_OPEN_div_50
Physical progress measurement will be done as per the working procedure set by the Nepal Electricity Authority. The construction of major structures (such as headworks, pipe alignment, tunnel, powerhouse, etc.) has started and progress has been achieved.
In case of solar projects, the status of panel purchase agreement, opening of LC, completion of land management and commencement of construction of mounting stretcher and foundation will also be considered as indicators of progress.
The Department TAG_OPEN_div_44 of Electricity Trade may warn and issue necessary directives to the projects in Group ‘B’ to complete the construction work on time. The Department of Trade will monitor whether or not the directives given by the Authority are followed. Regular monitoring will be done with a time limit. The classification will be done in the next category as per the need within a maximum of 6 months.
Likewise, a ‘Notice of Default’ will be issued to the projects in Group ‘C’ as per the PPA.TAG_OPEN_div_42 If there is no satisfactory answer or improvement is not seen, the process of annulling the agreement will also be initiated.
The physical progress of 25 percent should be as per the Physical Progress Procedure of the NRA, 2071.TAG_OPEN_div_40
It is expected to make the power project management more systematic, transparent and accountable by maintaining a clear distinction between the projects that have been stalled for a long time, the projects that are progressing and the projects that have been delayed in operation.
प्रतिक्रिया दिनुहोस्